SHH Resources Holdings Bhd's wholly owned subsidiary, SHH Furniture Industries Sdn Bhd, has entered into an agreement with Gerak Teras Sdn Bhd on Oct 28, 2024, for the acquisition of 1.581 million shares, or 51% equity interest, in Deseng Hardware Sdn Bhd for RM1.27 million.

The purchase will be satisfied wholly by cash and the acquisition will be funded by internal generated funds.

The purchase consideration represents a discount of about 26.4% over Gerak Teras' share of proforma net assets of Deseng.

The acquisition has no effect on the issued and paid-up share capital of SHH Resources and the shareholdings of substantial shareholders of SHH Resources.

The acquisition is not expected to have any material effect on the gearing, earnings and net assets of SHH for the financial year ending June 30, 2025.

Barring any unforeseen circumstances, the acquisition is expected to be completed within two months from the agreement date.